The European Union and the United Nations Capital Development Fund (UNCDF) have signed a significant partnership agreement during the 81st session of the United Nations General Assembly (UNGA81). The agreement involves a €50 million guarantee from the European Union to support sustainable urban and subnational investments in developing countries. This partnership marks a major milestone in the collaboration between the EU and UNCDF, and it is the first EFSD+ guarantee agreement between the European Union and a UN fund.
The European Fund for Sustainable Development Plus (EFSD+) Sustainable Cities Guarantee Facility will enable UNCDF to mobilize additional public and private financing for sustainable urban infrastructure projects. The focus will be on Least Developed Countries, Small Island Developing States, and fragile settings. By providing guarantees to financial institutions, UNCDF aims to unlock more affordable finance for sustainable and climate-resilient urban infrastructure in Sub-Saharan Africa, Asia, the Pacific, and the Middle East.
European Commissioner for International Partnerships, Jozef Síkela, emphasized the importance of investing in sustainable urban infrastructure to build resilience and improve lives. He noted that public funds must be used more effectively to meet the scale of investment needed to address climate change. The €50 million EFSD+ guarantee is a strategic move to leverage additional financing for sustainable urban development.
Alexander De Croo, Managing Director of UNCDF, highlighted the potential of the partnership to unlock financing for sustainable urban infrastructure projects. He mentioned that with the backing of the European Union, UNCDF can support projects such as affordable housing, renewable energy, and water and utilities. The partnership will help bring larger flows of public and private capital into markets and communities that conventional finance struggles to reach.
The Sustainable Cities Guarantee Facility will support eligible investments in essential local infrastructure and services. These include renewable energy, transport, water and utilities, waste management, agricultural value chains, digital connectivity, sustainable tourism, local markets, affordable housing, public lighting, industrial development, education, and healthcare. The facility is expected to have a positive impact on sustainable urban development in various regions.
The ceremonial signing of the agreement during UNGA81 brought together key stakeholders, including Commissioner Síkela, De Croo, and Pradeep Kurukulasuriya, Executive Secretary of UNCDF. The partnership represents a multi-year engagement between the EU and UNCDF, and it is expected to yield significant results in sustainable urban development.
Asaase Radio, a Ghanaian media outlet, reported on the partnership, highlighting its potential to drive sustainable development in Africa. The partnership between the European Union and UNCDF is a significant step towards achieving sustainable urban development in developing countries, and it is expected to have a lasting impact on the lives of millions of people.
Key points
- The European Union and UNCDF have partnered on a €50 million guarantee to support sustainable urban and subnational investments in developing countries.
- The partnership focuses on Least Developed Countries, Small Island Developing States, and fragile settings.
- The guarantee facility will support eligible investments in essential local infrastructure and services, including renewable energy, transport, and affordable housing.
